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5 Compelling Reasons on Why Buying a New Home in the Winter is a Perfect Gift

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5 Compelling Reasons on Why Buying a New Home in the Winter is a Perfect Gift

Andrew Bayon
Dec 6 5 minutes read

As everyone is excited about saving a few $10 here or $100 here on presents — why not take advantage of the benefits of buying a home in the winter, so that you can save more. If you're considering buying a new home, why not treat yourself and your family to a new home these holidays?

It's no secret that the real estate market is hotter when the weather is warmer. Spring and Summer are usually the busiest seasons for real estate. It's more pleasurable to tour homes when the weather is warmer. Not to mention the fact that it is the Holiday season from November through December. Luckily in Florida, definitely in Tampa, the real estate market is still kicking during the winter due to the snowbirds.

But as a homebuyer, there are some serious advantages to buying a new home during the winter time. There's a reason that as an investor one of the biggest tips for investing is to swim against the current. Buying a home is an investment. There are advantages to swimming against the current. Grab your coat, your coffee or some hot chocolate and let's get ready to soak up some knowledge.

The overall process can turn out to be much quicker in the winter. If you're considering buying a home in the winter, here are 5 compelling reasons to do so:

1. Less buyer competition

More people looking to buy in the spring and summer, means there are more people to compete against for a property. It's why you end up seeing bidding wars. Homes selling in the first 1 to 2 weeks or you may not even see the home because it may presell before you have a chance.

This is the #1 reason. Since it’s taboo to buy a home in the winter, you’re going to find that there is far less competition in the winter. You'll be swimming against the current, rather than fighting it.

2. Tax Benefits

There are a few things in life that are certain, that is death and taxes.

Buying a home has a list of tax benefits. Which is why if you're tired of paying your landlord's mortgage, you can consider purchasing a home when the time is right. That way you can start building equity. On top of that, you are able to deduct interest paid on your mortgage. When you purchase a new home before April, you will be able to maximize your tax deductions. 

An immediate benefit if you'll be deducting mortgage interest, is that you may be able to reduce the amount of federal income tax that is withheld — which can result in a higher paycheck every month.

Property taxes and some closing costs are also tax deductible. If you prepay mortgage "points" at closing in order to get a lower interest rate for the life of your loan, the IRS considers those points to be prepaid mortgage interest. It's important to consult your tax consultant/accountant to see how you can utilize your home purchase in the upcoming tax season.

3. Interest Rate Certainty

If you read our prior article you can see what's going on in the market. The market is in a very healthy spot. The economy is doing well and so is the Tampa real estate market. Not only are interest rates historically at a low, during the winter time you know what you're getting for your rate.

You don't know what may happen in 6-12 months. Or where the market will be. The rate you get can play a major role in what you pay long-term:

  • $500,000 at a 4% interest rate is an 859k total mortgage
  • $450,000 at a 6% interest rate is a 971k total mortgage

Property taxes and some closing costs are also tax deductible. If you prepay mortgage "points" at closing in order to get a lower interest rate for the life of your loan, the IRS considers those points to be prepaid mortgage interest. It's important to consult your tax consultant/accountant to see how you can utilize your home purchase in the upcoming tax season.

4. Everyone is on your side to close quick

The realtors, builder, lenders, bank, everyone wants to close before the new year. There are fewer deals happening which free up time for underwriters.

If you've never bought a home during the summer let me explain something, everyone is busy. More transactions are happening so all parties are hard at work. Sellers and realtor are showing homes to multiple people. Lenders are working on multiple deals. Underwriters have a lot more work, and everyone else seems to be on vacation.

In the winter everyone is less busy and they want to close before the new year.

5. Time to unpack

Closing on a new home and moving can be hectic if you have to juggle working full time. With the Holidays, you have extra time and energy to move. And potentially extra hands!

If you're considering buying a new home, you deserve to treat yourself these Holidays. Instead of focusing on saving some money on gifts, why not save more money and give your family the gift of a new home! 🎁

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